David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest (www.etfdigest.com). Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More

The previous theme over the past 3 years may be repeating as 2012 moves forward: "Bad news is good, good news is better". Of lying and willfully misleading investors is a path we shouldn't go down. The truth is the most thoughtful people involved with markets are being steamrolled by central bank liquidity. Whether it's the ECB, Bank of England, Bank of Japan, People's Bank of China or the U.S. Fed QE and ZIRP trump all other analysis.

If employment or eurozone conditions are weak you must put your mind with "Orwellian" thinking since bad news means more liquidity. Good news means good news and asset prices will inflate even more. The central bank punchbowl isn't going anywhere until perhaps May. Then there'll be more focus on the election and its aftermath. And, after the election the bills will come due, bond vigilantes will become more emboldened and government jobs -- including at the Fed and Treasury -- may be safe enough to make tougher choices.

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Bernanke claims to be a Great Depression scholar, but we think it much more likely that he really is a George Orwell scholar. It seems that he has mastered the doublespeak of Orwell much more proficiently than the economics of free markets and market price discovery mechanisms.

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